California HOA Laws for Owners & Boards

California has some of the most detailed HOA laws in the country. The Davis-Stirling Common Interest Development Act governs nearly every homeowners association and condominium in the state.

Understanding this law matters whether you sit on a board or pay assessments to one. Here’s what both sides need to know.

The Davis-Stirling Act: California’s HOA statute

The Davis-Stirling Act is codified in California Civil Code Sections 4000 through 6150. It applies to common interest developments (CIDs) — a category that includes condominiums, planned developments, stock cooperatives, and community apartment projects.

The Act covers governance, finances, maintenance, dispute resolution, and homeowner rights. It has been amended frequently since its original passage in 1985, with major reorganization in 2014 and significant new provisions added nearly every legislative session.

If you’re involved with a California HOA in any capacity, the Davis-Stirling Act is the first place to look for answers.

Homeowner rights under California law

California provides homeowners with some of the strongest HOA protections in the country.

Open meetings

Board meetings must be open to all members (Civil Code Section 4900). The board must post a meeting notice at least four days in advance. The notice must include the agenda, and the board generally cannot act on items not on the agenda.

Homeowners can speak on any agenda item. The board may set reasonable time limits but cannot prohibit participation.

Access to records

Members have the right to inspect and copy association records (Civil Code Section 5200). This includes financial statements, bank records, contracts, meeting minutes, membership lists (with restrictions), and the governing documents.

The association must provide requested records within 10 business days. It can charge reasonable reproduction costs but cannot charge for the time spent locating records.

California resale disclosure requirements

California requires a seller — through the association — to hand buyers a detailed disclosure package before a home in a common interest development changes hands. Civil Code Section 4525 lists what must be provided at resale, including the governing documents, the most recent financial statements, a statement of assessments and any transfer fees, insurance summaries, and — critically — whether the seller owes the association any money.

This disclosure package overlaps closely with the estoppel certificate process: the statement of the seller’s assessment status functions much like the estoppel information a lender or title company relies on at closing to confirm the account is current before funds change hands. Associations typically have a set number of business days to assemble and deliver these documents once requested, and can charge a reasonable fee for doing so. Buyers and their agents should request the disclosure package early in escrow, since a delayed response can hold up closing. For more on how the related estoppel certificate process works, see our guide on HOA estoppel certificates.

Right to vote

Members vote on board elections, CC&R amendments, assessments above certain thresholds, and other major decisions. California requires secret ballots for most association elections (Civil Code Section 5100).

Election rules must be adopted by the board and distributed to members. An independent inspector of elections — not a board member — must oversee the process.

Protection from retaliation

California law prohibits an HOA from retaliating against a member who exercises their rights — such as requesting records, running for the board, or filing a complaint. Retaliation can include selective enforcement, denial of access, or threats.

Board duties and governance

Board members in California owe fiduciary duties to the association and its members. These include the duty of care, the duty of loyalty, and the duty to act within the scope of their authority.

Meeting requirements

The board must hold regular meetings at a time and place stated in the bylaws. Special meetings require notice. Emergency meetings are allowed for urgent situations but must be documented.

Executive sessions (closed meetings) are limited to specific topics: litigation, contracts, personnel, member discipline, and formation of a response to legal threats. All other business must occur in open session.

Financial obligations

The board must prepare and distribute an annual budget (Civil Code Section 5300). The budget report must include a summary of reserves, insurance information, and any outstanding loans. It must be distributed 30-75 days before the start of the fiscal year.

A board that fails to distribute the budget report or the required disclosures faces penalties, including the inability to collect assessments above the prior year’s level until the report is distributed.

California insurance requirements

Davis-Stirling requires California associations to maintain insurance, and to tell homeowners about it. Civil Code Section 5300, the same budget-report statute discussed above, requires the board to include a summary of the association’s insurance policies — coverage types, limits, and whether the policy is up for renewal — in the annual disclosure package every homeowner receives. Separate Davis-Stirling provisions require the board to notify members promptly if a policy lapses, is canceled, or isn’t renewed, so owners aren’t caught by surprise.

The statute doesn’t hand associations a rigid checklist of exactly which coverages to buy. Instead, it requires adequate property and liability coverage on the common areas as part of the board’s fiduciary duty under the Davis-Stirling Act, then forces disclosure of what was actually purchased. That combination — a general adequacy standard plus mandatory transparency — is the core of how California enforces HOA insurance compliance. For a full breakdown of what a well-insured association’s policy should include, see our guide on what HOA insurance covers.

California audit and financial review requirements

California ties the level of financial scrutiny an association owes its members to how much money passes through it. Under Civil Code Section 5305, an association with annual gross income over $75,000 must have its financial statement reviewed by a licensed independent accountant, unless the membership votes to waive that review. Associations with lower gross income can generally rely on a simpler compilation of their financials instead, and larger or more financially complex associations may still choose a full audit even where the statute would only require a review.

These review and audit obligations exist to catch financial mismanagement or fraud before it grows into a bigger problem, and the resulting report becomes part of what members are entitled to inspect under the records-access rules discussed above. Boards that skip a required review, or let a membership waiver lapse without a fresh vote, are exposed to the same fiduciary-duty liability that applies to other financial failures. For the full breakdown of when a review, compilation, or audit is required and how the process works, see our guide on HOA audit requirements.

Election rules

The board must adopt election rules (Civil Code Section 5105). Elections must use secret written ballots. Counting must occur at an open meeting. The inspector of elections must be independent — not a board member, candidate, or relative of either.

Cumulative voting is required unless the governing documents state otherwise. This allows minority factions to concentrate their votes and gain board representation.

Assessment rules

California has detailed rules governing HOA assessments (Civil Code Sections 5600-5625).

Regular assessments

The board can increase regular assessments by up to 20% per year without a membership vote. Increases above 20% require approval by a majority of a quorum of the membership.

Special assessments

A special assessment that exceeds 5% of the current year’s budgeted gross expenses requires membership approval. The membership must approve by a majority of a quorum.

Assessment collection and liens

The association can record a lien against a unit for delinquent assessments after following a specific notice and hearing process (Civil Code Section 5650). The lien may not be recorded until the assessment is at least 30 days delinquent.

Before recording a lien, the association must offer the owner a payment plan.

Foreclosure limits

California restricts HOA foreclosure to protect homeowners. The association can only foreclose on an assessment lien — not on fines alone. Nonjudicial foreclosure (sale without court involvement) is available only if the delinquent assessments (excluding late charges, fees, costs, and fines) exceed $1,800 or are more than 12 months past due.

The board must approve the decision to foreclose by majority vote in executive session.

Key recent law changes

California adds or amends HOA statutes almost every year. Here are the most significant recent changes.

SB 326 — Balcony and elevated element inspections

SB 326 requires associations with buildings that have three or more multifamily units to have licensed professionals inspect balconies, decks, walkways, and other elevated exterior elements. The initial inspection deadline was January 1, 2025, with follow-up inspections required every nine years.

Associations that have not yet completed their SB 326 inspections should act immediately. Noncompliance exposes the board to personal liability.

AB 130 — Fine caps

AB 130 caps most HOA fines at $200 per violation. This is a significant change for associations that previously imposed escalating daily fines for ongoing violations like unapproved exterior modifications or parking violations.

Exceptions exist for violations that pose a health or safety risk. The cap does not apply to charges for damage to common areas or cost-recovery for enforcement actions.

SB 770 — EV charger installation

SB 770 streamlines the process for homeowners to install electric vehicle chargers. It removes the previous requirement that the installing owner name the HOA as an additional insured on their liability policy.

The HOA can still require the owner to carry insurance for the charger, but the association no longer needs to be listed as an additional insured. This removes a barrier that made EV charger installations difficult in many condominium complexes.

Landscaping and drought-tolerant turf

California limits how far an HOA can go in restricting water-wise landscaping. Under Civil Code Section 4735, an association generally cannot prohibit a homeowner from installing low-water-use plants, artificial turf, or other drought-tolerant landscaping in their own yard, even if the CC&Rs otherwise call for a traditional lawn. The law reflects California’s recurring drought cycles and the state’s broader push to cut outdoor water use.

An association can still impose reasonable design guidelines — requiring an architectural review application, setting standards for how artificial turf is installed and maintained, or restricting synthetic turf near shared common areas — but it cannot use those guidelines to functionally ban drought-tolerant landscaping altogether. Homeowners who run into resistance should point the board to the statute and request the association’s design guidelines in writing so both sides are working from the same standard. As with other CC&R restrictions, the association’s written rules still control the details, even though the state sets the floor.

California Solar Rights Act (Civil Code Section 714)

California was one of the first states to give homeowners a legal right to install solar panels over an HOA’s objection. The Solar Rights Act, Civil Code Section 714, makes most CC&R provisions that effectively ban or significantly restrict solar energy systems void and unenforceable. An association can still require a reasonable, cost-effective approval process and impose aesthetic conditions, like requiring panels to follow the roofline where feasible, but it can’t use those conditions to add substantial cost or meaningfully cut a system’s expected performance.

The Solar Rights Act has been amended over the years to close loopholes associations tried to use to slow-walk approvals, and California courts have generally read it in favor of the homeowner installing the system. If your board denies or delays a solar application, ask specifically which CC&R provision it’s relying on and whether that provision survives Section 714. For the deeper explainer on solar-panel rights, satellite dishes, and ham radio antennas across different states, see our guide on can an HOA deny solar panels.

Dispute resolution

California mandates a two-step dispute resolution process before an HOA lawsuit can proceed.

Internal dispute resolution (IDR)

Either party — homeowner or association — can request IDR under Civil Code Section 5900. The request must be in writing. The parties meet informally to try to resolve the dispute. It is voluntary but strongly encouraged.

Alternative dispute resolution (ADR)

If IDR fails, either party can demand ADR under Civil Code Section 5925. This typically means mediation — a structured negotiation with a neutral mediator.

A party that refuses ADR before filing suit may lose the right to recover attorney’s fees, even if they win the case. This is a strong incentive to attempt mediation first.

Court action

If both IDR and ADR fail, either party can file in court. Small claims court handles disputes up to $12,500 (for individuals). Larger claims go to superior court.

Some disputes qualify for the streamlined procedures under Civil Code Section 5975, which allow a court to enforce the governing documents and award attorney’s fees to the prevailing party.

How California compares to other states

California’s HOA laws are among the most homeowner-protective in the country. Key differences from other states:

• Mandatory ADR — many states encourage it; California effectively requires it.
• Fine caps — most states have no statutory limit on HOA fines.
• Foreclosure restrictions — California’s threshold ($1,800 or 12 months) is more protective than states that allow foreclosure for any delinquent amount.
• Election oversight — the independent inspector requirement is more rigorous than most states.

For a comparison, see our guide on Florida HOA laws, which take a different approach to many of the same issues.

The bottom line

California’s Davis-Stirling Act gives homeowners strong protections — but only if they know and exercise their rights. Attend meetings, request records, vote in elections, and use the IDR/ADR process when disputes arise.

Boards that follow the Act properly protect themselves from liability and build trust with their communities. Boards that don’t follow it expose themselves — and sometimes individual directors — to legal consequences.

If you’re unsure whether your board is complying with California law, consult an HOA attorney who practices in this area. The statute is detailed, and recent changes may affect your situation.